Indian Stock Market: 7 Key Developments Overnight – Nifty Surges, DeepSeek Worries Impact Nvidia Shares
Indian stock market is anticipated to open cautiously on Tuesday, with the domestic equity market indices, Sensex and Nifty 50, following the trend of weakness in global markets.
Asian markets experienced a decline, while the US stock market closed with mixed results. The Nasdaq saw its largest one-day percentage drop since December 18, and the S&P 500 recorded its biggest one-day percentage fall since January 10.
The introduction of a low-cost Chinese artificial intelligence model, DeepSeek, led to a significant sell-off in US chipmakers and technology stocks worldwide.
Yesterday, the Indian stock market faced substantial losses, with both benchmark indices dropping over one percent. The Sensex plummeted by 824.29 points, or 1.08%, to end at 75,366.17, while the Nifty 50 closed 263.05 points, or 1.14%, lower at 22,829.15.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., stated, “Given the global market weakness and concerns regarding Trump’s trade policy, Indian equities are likely to experience continued pressure in the short term. Investors will be closely monitoring the upcoming Q3 results, the Federal Reserve’s stance, and India’s Budget announcements throughout this 6-day trading week for further guidance.”
Here are the key global market indicators for Sensex today:
Asian Markets
Asian markets experienced a decline on Tuesday, following losses on Wall Street due to a sell-off in technology stocks driven by concerns over China’s DeepSeek. Japan’s Nikkei 225 fell by 0.67%, while the Topix dropped by 0.36%. However, Hong Kong’s Hang Seng index futures suggested a higher opening. Several Asian markets, including Taiwan, South Korea, and China, are closed for the Lunar New Year holiday.
Nifty Today
The Gift Nifty was trading around 22,923 levels, a premium of nearly 76 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
The US stock market closed mixed on Monday, with the Nasdaq experiencing its largest one-day percentage drop since December 18. This drop was triggered by a low-cost Chinese artificial intelligence model, DeepSeek’s AI Assistant, leading to a significant sell-off in US chipmakers. The Dow Jones Industrial Average gained 289.33 points, or 0.65%, to 44,713.58, while the S&P 500 lost 88.96 points, or 1.46%, to 6,012.28. The Nasdaq Composite closed 612.47 points, or 3.07%, lower at 19,341.83. Notably, Nvidia shares plummeted by 17%, Microsoft shares declined by 2.1%, and Alphabet stock price plunged by 4.2%. On the other hand, Apple shares rallied by 3.18%, while Vistra stock dropped by 28.3%.
Nvidia Share Price
Nvidia shares saw a significant decline of nearly 17% following the emergence of a low-cost Chinese generative AI model. The share price crashed by 16.86% to end at $118.58 apiece on Monday, resulting in a loss
RBI
The Reserve Bank of India is poised to inject much-needed liquidity of ₹1.5 lakh crore into the financial system through a combination of forex and money market measures. This move sets the stage for a potential rate cut next week. The RBI announced that it will purchase government securities worth ₹60,000 crore through open market operations (OMOs) in three tranches of ₹20,000 crore each. Additionally, the RBI will conduct a 56-day variable rate repo auction worth ₹50,000 crore on 7 February and a dollar/rupee sell swap auction of $5 billion for a tenor of six months on 31 January.
Oil Prices
After a 2% decline on Monday, crude oil prices stabilized. Brent crude oil dropped by 1.81% to $77.08 a barrel, while US West Texas Intermediate (WTI) crude futures saw a slight decrease of 0.08% to $73.11.
Gold Prices Today
Gold prices rebounded after a more than 1% drop in the previous session. Spot gold remained steady at $2,742.49 per ounce, while US gold futures rose by 0.3% to $2,746.70.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.